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I have created catalog price rule of 10% for a group of login customer and applied it. It was working properly suddenly after two days there wasn't any discount on frontend. After that I reapplied it and again after 2-3 days it again reverted to same price.There aren't any other rules there.

So can anybody tell me what kind of problem is that ?

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This is probably due to the cron is not working in your Magento setup.

The catalog rule model has an observer to run daily to apply the price rules that are active for yesterday, today, and tomorrow.

So affectively, once catalog price rule applied, your store should show correct pricing today and tomorrow without cron job running. After that, the price will needs a re-apply.

You can have a look here for how to setup up the cron job.

http://www.magentocommerce.com/wiki/1_-_installation_and_configuration/how_to_setup_a_cron_job

Actually, in that link, the observer I mentioned early is used as an example.

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